Research Update: Doosan Bobcat 'BB' Rating Affirmed With Negative Outlook; Proposed Term Loan Rated 'BB'; Issue Ratings Lowered To 'BB'

We expect Doosan Bobcat Inc.'s (DBI) earnings to remain steady over the next 12-24 months, supported by its strong market position in the U.S. and improving business diversity. That said, it is still uncertain whether ongoing restructuring at the broader Doosan group level will meaningfully improve the parent group's tight liquidity and high leverage. On May 4, 2021, we affirmed our 'BB' long-term issuer credit rating on DBI. At the same time, we assigned our 'BB' long-term issue rating to the compact construction equipment maker's proposed guaranteed US$500 million senior secured term loan B. We also lowered the long-term issue rating on its existing senior secured term loan B due in 2024 and senior secured notes due in 2025 to

...- We expect Doosan Bobcat Inc.'s (DBI) earnings to remain steady over the next 12-24 months, supported by its strong market position in the U.S. and improving business diversity. - That said, it is still uncertain whether ongoing restructuring at the broader Doosan group level will meaningfully improve the parent group's tight liquidity and high leverage. - On May 4, 2021, we affirmed our '##' long-term issuer credit rating on DBI. At the same time, we assigned our '##' long-term issue rating to the compact construction equipment maker's proposed guaranteed US$500 million senior secured term loan B. We also lowered the long-term issue rating on its existing senior secured term loan B due in 2024 and senior secured notes due in 2025 to '##' from '##+' in view of the company's incremental debt. - The negative outlook on DBI reflects downside risks related to Doosan group's ongoing restructuring over the next six to 12 months....

Research Update